What is the difference between positive and normative analysis?
What will be an ideal response?
Positive analysis refers to the attempt to answer descriptive questions, focusing on economic behavior without making recommendations about what is or ought to be. On the other hand, normative analysis makes value judgments regarding what is or should be.
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All else constant, if the central bank wants to slow the pace at which the economy is expanding, it should increase interest rates
Indicate whether the statement is true or false
Hitler's Germany was an example of a _________ economic system.
A. Capitalist B. Fascist C. Communist D. Socialist
Which of the following will occur when the central bank pursues expansionary monetary policy?
A) a leftward shift in the money demand curve and a leftward shift in the money supply curve B) a rightward shift in the money demand curve and a leftward shift in the money supply curve. C) a leftward shift in the money demand curve and a rightward shift in the money supply curve. D) a rightward shift in the money demand curve and a rightward shift in the money supply curve. E) none of the above
Farm price support programs most often take the form of price
A. Floors above the equilibrium price. B. Ceilings above the equilibrium price. C. Ceilings below the equilibrium price. D. Floors below the equilibrium price.